Tariff Talk: Ford To Hike Prices On Three Mexico-Built Models

Finally some good news on tariffs.  You'll see in below a deal has been struck with the U.K. for lower tariffs.  Besides that, here is a synopsis of excerpt & headlines I have noticed and that caught my attention. On the not-so-good news front, Ford plans to increase prices on three models built in Mexico, including the Maverick.

• Deal Struck:  British automakers will be allowed to export 100,000 vehicles to the U.S. each year at a reduced tariff rate of 10 percent after a trade deal the countries agreed to on May 8. Previously, Jaguar Land Rover paused its shipments to the U.S. for a month, though they have since restarted. “We warmly welcome this deal, which secures greater certainty for our sector and the communities it supports,” JLR CEO Adrian Mardell said in a prepared statement.  The announcement sent shares in luxury carmaker Aston Martin up 10 percent. The 100,000-vehicle quota would cover almost all of the U.K.’s annual car exports to the U.S. The U.K. exported about 102,000 vehicles to the U.S. in 2024, according to the Society of Motor Manufacturers and Traders. Any vehicles imported after the first 100,000 will be subject to the full 25 percent auto tariff, according to the White House. It is highly likely that the expensive vehicles made in the United Kingdom and sold here will be able to absorb the 10% tariff with little to no price increase to consumers.
  

• Ford is hiking prices on three of its Mexico-produced models effective May 2, becoming one of the first major automakers to adjust sticker prices following President Trump’s tariffs. Prices on the Mustang Mach-E electric crossover, Maverick pickup and Bronco Sport will increase as much as $2,000 on some models, according to a notice sent to dealers.  Remember, ground stock is at the cheaper prices, but this was cause a run on these products.  Ford anticipates a $1.5 billion reduction in 2025 earnings, leading to the suspension of its full-year financial forecast. CEO Jim Farley indicated that tariffs could persist for several years, potentially increasing vehicle prices by up to $5,000. 
  
  
• General Motors revised its 2025 earnings forecast downward by $4–5 billion, citing tariff-related costs. GM also suspended its $4 billion share buyback program. Stellantis withdrew its financial guidance for 2025, highlighting uncertainties stemming from the new trade policies
  
  
• Mercedes-Benz plans to shift production of a core vehicle segment to its Tuscaloosa, Alabama, facility by 2027, aiming to mitigate tariff impacts. BMW initially absorbed tariff costs for vehicles produced in Mexico, but ceased this practice on May 1, 2025, potentially leading to price increases for consumers.
  
  
• Analysts project that the average price of new vehicles in the U.S. could rise significantly, potentially exceeding $50,000 average, as manufacturers pass on increased costs to consumers. 
  
  
• Used-vehicle wholesale prices increased markedly in April as dealers bought from auto auctions in preparation for vehicle supply and demand influenced by tariffs, Cox Automotive said May 7.  “We expected to see strong price appreciation in response to the tariffs, and that’s exactly what came,” said Jeremy Robb, senior director of economic and industry insights at Cox Automotive.
  
  
• Rivian Automotive Inc. reported a first-quarter net loss of $541 million, a significant improvement over its $1.45 billion net loss in the same period last year. But the Trump administration’s new tariff regime weighed on Rivian’s forward guidance.
  
  
• Audi could build vehicles at three locations in the U.S., in part by leveraging production capacities of parent Volkswagen Group, sources told Automotive News Europe sibling publication Automobilwoche.  Audi imports cars it sells in the U.S. from Mexico and Europe, which is now a problem because of 25 percent tariffs that went into effect May 3.
  
  
• Stellantis, Mercedes-Benz and Polestar pulled their forecasts for this year citing the duties, which are upending supply chains and driving up car prices.  Volkswagen Group left its outlook largely unchanged but warned it is not yet factoring in the impact of the levies.  The volatility sparked by the duties “is too high to reliably assess” how business will develop this year, Mercedes said. The automaker warned that operating earnings, cash flow and margins would be hit if the current trade hurdles persist.